Dry Bulk: Panamax Rates Hit Lowest in Two Years

The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, slipped on Tuesday, on lower rates for all vessel segments as panamaxes hit their lowest level in two years.

The overall index, which factors in rates for capesize, panamax, and supramax shipping vessels, was down 43 points, or 3.8%, to 1,096.

The capesize index lost 60 points, or 3.8%, to 1,536.

Average daily earnings for capesizes, which typically transport 150,000-tonne cargoes such as iron ore and coal, were down $496 at $12,741.

The panamax index extended its fall for the 12th consecutive day, dropping 61 points, or 4.9%, to 1,189, lowest since November 2020.

Average daily earnings for panamaxes, which usually carry coal or grain cargoes of about 60,000 to 70,000 tonnes, fell by $547 to $10,705.

Among smaller vessels, the supramax index fell for the 13th consecutive session by 22 points to 803.

Dalian and Singapore iron ore futures rose after China said it has seen the peak of COVID-19 infections in many regions, adding to the optimism over the drastic easing of pandemic restrictions in the world's biggest steel producer.

If the expectations (of China supporting its real estate sector after reopening of its borders) prove right, dry bulk carriers would see increased support in freight rates, wrote shipbroker Allied, in a weekly market report.

(Reuters - Reporting by Harshit Verma; Editing by Shailesh Kuber)